Nifty outlook and top trading ideas by CapitalVia Global Research

Technical calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited -Investment Advisor

NIFTY VIEW

The RBI slashed repo rates by 35 basis points in its third bimonthly credit policy, announced yesterday. This, however, was not enough to drive markets higher and we witnessed sell-off in the second half. Weaker global cues along with gold prices surging to $1,500 in Comex proved to weigh stronger on the markets today. The market witnessed strong resistance at 11,000 and closed at 10,855.50 shading 92.80 points. The FIIs' selling spree continued with the figure reaching more than Rs 16,870 crores. The market is trying to hold on to its weekly 100-day EMA at 10,780. As per the Option data, Nifty has witnessed put unwinding at 10,800 strike along with 10,900 which suggests weakening of supports level along with huge call writing at 11,000 which will act as an immediate resistance.
 

In the coming week, we can see a big movement in Cement stocks:

BUY ACC LTD (Above Rs 1,565)

TARGET: Rs 1,630
 

STOP LOSS: Rs 1,525

The stock has formed a reversal pattern on daily charts after taking firm support at 1,500, and now it is showing signs of a possible breakout above the 1,565 levels. The level above 1,565 would result in MACD bullish crossover on the daily charts. Moving average setup is currently bullish on the short- and medium-term charts, supporting our analysis.
 

Considering the technical evidence discussed above, we recommend buying the stock above Rs 1,565 for a target of Rs 1,630, keeping a stop loss at Rs 1,525 on closing basis.

BUY ULTRATECH CEMENT (above Rs 4,375)
 

TARGET: Rs 4,490
 

STOP LOSS: Rs 4,300
 

The stock is trading in range despite market’s movement. Ultracemco is witnessing major moving average crossover which would result in a strong bullish movement. The script is trading above all important moving averages.

Considering the technical evidence discussed above, we recommend buying the stock above Rs 4,375 for the target of Rs 4,490, keeping a stop loss at Rs 4,300 on closing basis.

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Disclaimer: The Analyst does not hold positions in any of the stocks mentioned above.